Volvo's Erik Severinson pushes electric future amid profit pressure and brand revival
Volvo Cars chief commercial officer Erik Severinson says the upcoming all-electric EX60 must prove that EVs can be both sustainable and desirable as the company battles falling margins and shifting politics.
In an interview at Volvo’s Gothenburg headquarters, chief commercial officer Erik Severinson explained that the brand’s survival hinges on delivering an electric car that compromises nothing, citing the EX60’s 810-kilometre range and rapid 10-minute charge to 340 kilometres. He warned that lingering range anxiety, high prices and long charging times still deter many consumers, especially as governments withdraw incentives and figures like Donald Trump denounce sustainability.
Volvo’s latest quarterly report revealed a gross margin decline to 15.8% and a share price slump to 22 Swedish kronor, reflecting U.S. tariffs and deep discounting. CEO Håkan Samuelsson, who returned after a decade, has overseen cost cuts, a shift toward a cooler brand image and a stronger focus on Swedish design. The company also faces the complexities of regionalization, balancing Chinese ownership by Geely with consumer sentiment in Europe, the United States and China.
Recent software issues with the EX90 SUV have prompted public apologies, underscoring the challenges of building a software-defined vehicle. Severinson believes that a distinctive brand presence—like a lone red T-shirt in a sea of white—will attract new buyers as Volvo approaches its centennial.
